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How Will You Vote This November? The Facts!

February 08, 2004

Dear Readers,

Below is a suggested letter to the editor, to be addressed to all major media. Please take the time to read it, and if you agree, to help us distribute this letter that is designed to be sent to your local newspaper in an effort to inform the American populace of our dire debt and financial crisis.

Links to national newspapers are listed at the end. Thank you.

Sincerely yours,

Bob Castle
Founding Member
http://www.goldismoney.info

Rich Lancaster | Michael Nystrom
www.depression2.tv

An informed electorate is essential for the survival of freedom. When a half trillion plus dollar budget deficit goes almost totally unreported - and the ostensible opposition party neglects to even mention it during the campaign - the access to information that makes democracy possible does not exist. The future has been stolen from the people of this country, yet even now most Americans have no idea of what has been done to them.

Is America Bankrupt? It’s a sobering thought. Is America really broke? The answer is clearly, YES, but living on borrowed time and money.

"The federal government on the eve of World War I was quite limited. In 1914, federal outlays totaled less than two percent of GNP. The top rate of the recently enacted federal individual income tax was seven percent on income over $500,000 (equivalent to about 10 times that amount in present day dollars), and 99 percent of the population owed no income tax. The 402,000 federal civilian employees, most of whom worked for the Post Office, made up about one percent of the labor force. Nor did the armed forces amount to much, numbering fewer than 166,000 active duty personnel. The federal government did not regulate securities markets, labor-management relations, or agricultural production. It set no minimum wage rate, collected no social security tax, provided no make-work jobs, or make believe job training for the unemployed. Although the feds did meddle in a few areas of economic life...the central government was for the most part, only a small nuisance. The government maintained the gold standard and suppressed labor disturbances that threatened to obstruct interstate commerce. The U.S. Supreme Court gave fairly strong protection to private property rights and freedom of contract, while generally insisting that state governments not deprive citizens of property rights without substantive due process. After World War I, the American people would never again enjoy a government which so closely approximated the Jeffersonian ideal." ---"The Costs of War: America's Pyrrhic Victories" Pg. 310

A recent study was done by Jagadeesh Gokhale and Kent Smetters which measures our government’s current debts and projected debts based on the proposed federal budget and revenues for 2004. By extending the numbers in constant 2003 dollars, they have come to the conclusion that the Federal government is officially insolvent to the tune of $43.5+ trillion and growing. You might ask, “Who are these guys?” Mr. Gokhale is the former Senior Economic Advisor to the Federal Reserve Bank of Cleveland and Mr. Smetters was recently on staff as the Deputy Assistant Secretary for Economic Policy. These fellas know what they are talking about! Additionally, the numbers they used are from the U.S. Department of Treasury.

“Let me describe the current $43.5 trillion shortfall another way. Instead of raising payroll taxes, suppose we eliminate half of the rest of the federal government in 2004 except for Social Security and Medicare. In particular, we eliminate half of the federal government’s spending on the military, homeland security, roads, education, veteran’s affairs, agriculture, labor affairs, NASA, commerce, law enforcement, Medicaid, etc. – everything except for Social Security and Medicare. And we do this not just in 2004 but forever. Also suppose that we don’t change federal taxes so that people continue to pay taxes as projected. Now, for example, the $150 billion deficit projected for 2004 would turn to a $600 billion surplus! That sounds like a lot of money. But we would still accumulate surpluses too slowly over time. In particular, we would still be left with a fiscal imbalance of about $3.2 trillion. In other words, "shutting down half of the rest of government forever is not enough to put the U.S. fiscal policy on a sustainable course.” –Testimony by Kent Smetters for the Subcommittee on the Constitution of The United States House of Representatives. Submitted on March 3, 2003

http://www.house.gov/judiciary/smetters030603.htm

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over a louse fiscal responsibility, always followed by a dictatorship. The average of the world's great civilizations before they decline has been 200 years. These nations have progressed in this sequence: From bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to complacency; from complacency to apathy; from apathy to dependency; from dependency back again to bondage." --Alexander Tyler, in his 1770 book, “Cycle of Democracy”

Now, jobs are fleeing in a flight to safety, the average American pays over 65% in various taxes, and is regulated beyond the most virulent imaginings of a person living 80 years ago. Business is throttled and choked with regulations, and most of what we consume, is made, or even grown, somewhere else. The government is now similar to a totalitarian dictatorship, and grows stronger and more oppressive each day. Whether it will be Kerry or Bush, it will make no difference, as both are "insiders," inherited or married into wealth, and will exert every power they may seize to make the federal government ever more all encompassing. Our civilization has already existed several decades longer than the average of civilizations in past world history. Is it salvageable? Probably not! Can government be reduced? In history, governments never have been reduced. They have grown and grown until the entire nation collapsed. I know of no way to stop it...unfortunately.

Signed,


____________________________________
Your Name
“Without Prejudice” (UCC 1-207)
Your Address
Your City & State

____________________________________

Lets transmit this across America: "An informed electorate is essential for the survival of freedom"

Newspapers A thru L
http://charlestonvoice.netfirms.com/MediaAL.htm

Newspapers M thru R
http://charlestonvoice.netfirms.com/MediaMR.htm

Newspapers S thru Z
http://charlestonvoice.netfirms.com/MediaSZ.htm

"In a corrupt society the truth can be found in what one is forbidden to say!"

Posted by manystrom at February 8, 2004 04:51 PM
Comments

Hey Bob.


Your perspective is always educational and most often resonates with my beliefs and feelings.

Thanks for sending this in, its great. I do know there are theoretical ways to reverse a lot of what ails America. However, like you, I can't see anyone in a leadership role having the political will to take on the estabilishment, and all of the vested interests, in order to make a permanent fix happen.

Time will tell, but my gut says we're in this for the long haul. As a kid living around the world in the last days of the British Empire I watched with disgust and disillusionment as Britain slipped in to being a second world nation - I really don't like watching the same process gradually unfold here in the US, but that is precisely what is going on in slow motion. There are major differences, the US $ is the first real global fiat currency, and now we have derivatives, 6+ billion people, lots of modern weapons and a diminishing oil supply. All of these aspects throw curve balls at America's ability to unwind it's debt and global predicament in as peaceful a fashion as the British Empire was deconstructed.

Anyway, we shall see.

Michael, thanks for getting it up on the site so quickly for folks to read.

Cheers Rich

Posted by: Rich at February 9, 2004 04:26 AM

Great read........you know most politicians when debating in public usually say that we shouldn't saddle our kids with the debt and the bills. Ok......right......the debt will be paid? Is anyone joking here? The debt will not be paid.....so to keep on saying that our kids will be saddled with $43.5 Trillion and pay it off is ludicrous.
Thanks,
Merrick

Posted by: Merrick Finn at February 11, 2004 10:06 AM

Vote for Bush! The social mood must be taken into account when the economy comes to a screeching halt. If the republicans hold onto the house, the senate, and the presidency, they will receive all of the blame. Then in 2008, democrats can run anyone against the republicans and win. I believe this would be the best scenario for our country. People will need a party that they could turn to. Otherwise, look for the chaos to last for several additional years.

As for the debt problem, the numbers currently are lower than what is stated above. I agree if we continue at this rate, 43.5 trillion would be a conservative figure. But there are drastic measures that the government to lower its debt quickly. See how much is held in the Social Security trust fund (A fund that will disappear.)Additionally, please see Conquer the Crash by Robert Prechter (2002), I believe it is chapter 23 that will give some insight on how the government can reduce the debt overnight. It is nasty, but if the social mood is right people will cheer it.

Posted by: Roy at February 19, 2004 11:04 AM

Pat,
You want the republicans to take blame ?? why??
You want dictator hillary clinton in office?? the democrats are the majority of the reason why were in this debt that we are.. pull your head out of your butt..what we need is a party like the libitarian party with someone like Ron Paul out of texas or tom tancredo out of colorado.. that party is not controlled like the republicans and the dumbocrats......

Posted by: brian at February 22, 2004 12:47 AM
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